Who wants to be a millionaire? Nearly everyone, judging by the popularity of the quiz game of that name, as well as the phenomenal success of the National Lottery, writes Maggie Hartford.

Now lottery operator Camelot is to launch a new game with a maximum payout of 50m. National Lottery Extra, open only to ticket holders from the main draw, will run on Wednesdays and Saturdays from this week.

Other millionaires will include Camelot directors, with the game's launch expected to boost Camelot profits by between 5m and 10m a year even if the company fails to win the next seven-year licence against competition from Sir Richard Branson's People's Lottery consortium.

Since the lottery was launched six years ago, with a logo of a smiling face and crossed fingers designed by Saatchi, 1.76bn has been awarded to more than 36,000 charities and community and voluntary groups.

Last year the National Lottery Charities Board awarded a record 11,347 grants worth 450.6m. They include large sums to hospices and national charities and small grants to organisations like the Orchard pre-school in Little Milton, Bicester's new-look youth arts centre and Cutteslowe Community Association. More than 90 schools in Oxfordshire will get help with out-of-school-hours learning schemes.

The lives of 900 people have been transformed by lottery windfalls. Three people shared the biggest National Lottery jackpot so far of 42m, while factory worker Mukhtar Mohidin scooped the biggest individual win of 17.8m in 1994.

But one person, at least, believes there is no reason to smile. The Bishop of Oxford, the Rt Rev Richard Harries, hastens to explain that he is not a total killjoy. "I'm not opposed to gambling as such on a small scale, but I am seriously worried about these vast prizes.

"Research shows that it is the vast prizes that make the lottery such a success, but they create a fantasy world. People think 'If only I win one of those prizes, my life would change'.

"If we are going to have a lottery, I would strongly argue for many more smaller prizes of 50,000 or 100,000.

"People play out a fantasy life they are going to buy a yacht and give up work. We know that life has problems and is reasonably difficult for most people. Getting on with other people and struggling to make a living is all part of life and I believe there is a spiritual dimension to this. It needs to be faced up to. This fantasy life distracts people from what life is about and devalues honest toil and endeavour.

"I also have strong reservations that the Government is avoiding its responsibilities to education and the voluntary sector."

In answer to the question of how charities should raise the money instead, the bishop points to America. "There is a much more highly developed culture of giving. A lot of people make a lot of money but much of it seems to be given away to medical and charitable institutes."

The bishop is aware that he will have a hard job convincing people that the whole thing is not simply a harmless bit of fun.

"The lottery seems to be here to stay," he admits. "It is hugely popular, but I don't think that should stop one saying what one thinks about it. Whoever wins the contract, Branson or Camelot, I will still see whether I can make out a case to try having smaller prizes rather than big ones to try it for a bit and see how it would work."

Although 94 per cent of Britain's adults have played the lottery, and 66 per cent buy a ticket each week, the bishop is not alone in his reservations.

One of its biggest "good causes" has been the much-criticised Dome and critics say ticket buyers, mainly on low incomes, are paying for middle-class hobbies like opera. Camelot was forced to encourage spot-checks on retailers after regulator Oflot complained about under-age children buying tickets.

Its image was dented again last year when a jury in a libel action decided that Mr Guy Snowden, the chairman of GTech, one of the Camelot consortium members, had tried to bribe Virgin boss Sir Richard, who lives in Kidlington, not to bid for the lottery licence. Camelot has also been criticised for its huge profits and hefty pay rises for directors.

Despite all this, the National Lottery has rapidly become the world's largest, with 36 million people buying a ticket every week.

As the 17m Lottery Extra marketing campaign gets under way this weekend, Sir Richard is still wondering whether he will be a jackpot winner when the licence is eventually awarded.